Are you ready to delve into the world of one of the most successful investors of all time, Warren Buffett, and his legendary company, Berkshire Hathaway? Following their investments is like getting a masterclass in value investing. It's a journey that requires patience, a keen eye for detail, and a commitment to long-term thinking. So, let's get started!
Step 1: Understand the Philosophy First
Before you even think about looking at stock tickers, you need to embrace the Buffett mindset. This is the most crucial step. Ask yourself: "Am I a business owner or a stock trader?" If your answer is "a stock trader," you'll find it difficult to follow Berkshire Hathaway's strategy. Their approach is not about day-trading or chasing short-term gains. It's about buying a piece of a great business and holding it for the long haul.
Think like an owner: Warren Buffett and his team buy businesses, not just stocks. They look at a company's fundamentals, its competitive advantages, and its long-term earning power. They focus on the underlying value of the business, not the daily fluctuations of the stock price.
The "Economic Moat": A key concept is the "economic moat." This is a sustainable competitive advantage that protects a company from its competitors. It could be a strong brand, a patent, a network effect, or a cost advantage. Berkshire Hathaway invests in companies with wide, durable moats.
Patience is a virtue: Buffett famously said, "Our favorite holding period is forever." This isn't just a catchy phrase; it's a core tenet of their strategy. They are not afraid to hold positions for decades.
So, before you proceed, commit to thinking long-term. If you're looking for quick wins, this guide is not for you.
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| How To Follow Berkshire Hathaway Investments |
Step 2: Know Where to Find the Information
Now that you're in the right mindset, let's talk about the sources. You don't need to be a Wall Street insider to know what Berkshire Hathaway is buying and selling. The information is publicly available, thanks to regulations by the U.S. Securities and Exchange Commission (SEC).
Sub-heading 2.1: The 13F Filing – The Holy Grail
QuickTip: Look for patterns as you read.
The most direct way to see Berkshire Hathaway's public stock holdings is through the Form 13F.
What is a 13F? This is a quarterly report filed by institutional investment managers with over $100 million in assets under management. It discloses their equity holdings as of the end of the previous quarter.
When is it filed? The 13F is filed within 45 days after the end of each quarter (March 31, June 30, September 30, and December 31). So, for example, the holdings as of March 31 will be revealed no later than May 15.
Where to find it? You can find Berkshire Hathaway's 13F filings on the SEC's EDGAR database. Just search for "Berkshire Hathaway Inc." or their CIK number, which is 0001067983. Many financial news websites and stock tracking platforms also aggregate and analyze these filings, making it easier to read.
A crucial note: The 13F only shows long equity positions. It doesn't show their private company holdings (like GEICO or BNSF railroad), their bond holdings, or any short positions. It's a snapshot, and a backward-looking one at that. By the time you see the filing, the position may have already been changed.
Sub-heading 2.2: The Annual Report and Shareholder Letter
Another indispensable resource is the Berkshire Hathaway Annual Report and Warren Buffett's annual letter to shareholders.
What's in the Annual Report? This is a comprehensive document that provides a detailed overview of the company's financial performance, including its various operating businesses (such as insurance, railroads, and utilities) and its investment portfolio.
The Shareholder Letter: This is where Buffett, in his own words, discusses the company's performance, his investment philosophy, and his thoughts on the economy and the markets. It's a treasure trove of wisdom and insights. He often provides commentary on their major holdings and sometimes even hints at future moves.
Where to find them? These are available directly on the official Berkshire Hathaway website. Look for the "Annual & Interim Reports" section. The annual letter is released in late February or early March each year.
Step 3: Analyze the Holdings and Understand the "Why"
Once you have the data, the real work begins. Don't just copy the stocks you see on the list. The goal is to understand the logic behind the investments.
QuickTip: Skim slowly, read deeply.
Sub-heading 3.1: Look for the Top Positions
Berkshire Hathaway's portfolio is often highly concentrated. The top holdings, such as Apple, American Express, Coca-Cola, and Bank of America, often make up a significant portion of the total portfolio value.
Why these companies? Investigate why Buffett and his team are invested in these companies. What are their durable competitive advantages? What are their financial characteristics?
Analyze the changes: Pay close attention to any new purchases, sales, or reductions in existing positions. A significant reduction in a long-held position can be a sign that the investment thesis has changed.
Sub-heading 3.2: Don't Forget the "Subsidiaries"
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Remember, the public stock portfolio is only part of the story. Berkshire Hathaway is a holding company with a vast collection of wholly-owned businesses.
Some of their famous subsidiaries include: GEICO (insurance), BNSF (railroad), and numerous other companies in manufacturing, utilities, and retail.
Why this matters: The performance of these operating businesses is a major driver of Berkshire Hathaway's value. You can find information about them in the quarterly and annual reports.
Step 4: Beyond the Filings - Other Sources of Information
While the official filings are the most reliable source, there are other ways to stay up-to-date.
QuickTip: Skim the intro, then dive deeper.
Sub-heading 4.1: The Annual Shareholders Meeting
The annual meeting in Omaha, Nebraska, is a legendary event. Warren Buffett and his vice-chairman, Charlie Munger (until his passing), would answer questions from shareholders for hours.
Why is it valuable? It provides live, unscripted insights into their thinking on the markets, the economy, and their holdings. You can often find transcripts and videos of the meeting online.
Sub-heading 4.2: News and Media Coverage
Major financial news outlets closely follow Berkshire Hathaway.
Stay informed: Follow reliable sources like CNBC, Bloomberg, and The Wall Street Journal. They often report on the latest filings and provide expert analysis. Just be sure to always go back to the source documents to verify the information.
Step 5: The Final and Most Important Step – Do Your Own Research
Following Berkshire Hathaway's investments is a great starting point, but it should never be your only strategy.
Don't blindly follow: Their investment decisions are based on their own unique circumstances, tax situation, and portfolio structure. A stock that is a great fit for Berkshire Hathaway may not be right for you.
Build your own knowledge: Use their holdings as a starting point for your own research. Read the company's annual reports, analyze its financials, and understand its business.
Develop your own conviction: The goal is to learn from the masters, not to become a mere copycat. Develop your own investment thesis and only invest in companies you understand and believe in.
Following Berkshire Hathaway's investments is a journey of learning, not a shortcut to wealth. It's about adopting a disciplined, long-term approach to investing that has proven successful for decades.
Tip: Read carefully — skimming skips meaning.
10 Related FAQ Questions
How to find a company's CIK number? You can find a company's CIK (Central Index Key) number on the SEC's EDGAR database by searching for the company name. Berkshire Hathaway's CIK is 0001067983.
How to read a 13F filing? A 13F filing is a table that lists the securities held, the number of shares, and the market value of each holding at the end of the quarter. It can be found in a plain text or XML format on the SEC's website.
How to know if a Berkshire Hathaway holding is a new purchase or an old one? By comparing the current 13F filing to the previous quarter's filing, you can identify new positions, as well as increases or decreases in existing holdings. Websites that track institutional ownership often highlight these changes for you.
How to determine which investments are made by Warren Buffett vs. his deputies? While it's not always explicitly stated, it's widely believed that Warren Buffett oversees the largest, most concentrated positions (like Apple), while his investment managers, Todd Combs and Ted Weschler, manage the smaller positions in the portfolio.
How to access Warren Buffett's annual shareholder letters?
All of Warren Buffett's letters to shareholders, going back decades, are available for free on the official Berkshire Hathaway website,
How to attend the Berkshire Hathaway annual meeting? To attend the annual meeting in Omaha, you must be a Berkshire Hathaway shareholder. You can purchase one share of either BRK.A or BRK.B stock to be eligible for credentials.
How to understand Berkshire Hathaway's "operating earnings" vs. "net earnings"? Warren Buffett often emphasizes "operating earnings" in his letters, which represent the profit from the company's businesses. "Net earnings" includes unrealized gains or losses from their investments, which can be volatile and misleading.
How to calculate the value of Berkshire Hathaway's private businesses? This is a complex task. Analysts use various methods, such as discounted cash flow analysis or comparing them to publicly traded peers, to estimate the value of these private subsidiaries.
How to buy Berkshire Hathaway stock? You can buy shares of Berkshire Hathaway (BRK.A or BRK.B) through any brokerage account. BRK.B shares are much more affordable and widely accessible than the high-priced BRK.A shares.
How to learn more about value investing? Start by reading books by Warren Buffett's mentor, Benjamin Graham, such as "The Intelligent Investor," and books about Buffett's own philosophy, like "The Warren Buffett Way."
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